Photo: Information Week
The first expert network-related insider trading case just concluded.The verdict: GUILTY.
The requested* sentence, delivered today by prosecutors: 10 years in jail, according to Bloomberg.
(*Note: earlier we said that Jiau had been sentenced to 10 years. In fact she will be sentenced later. We regret the error.)
Winnie Jiau was charged with conspiracy to commit securities fraud and securities fraud in Nvidia.
This is bad news for hedge funds everywhere, because everyone uses expert networks, but it’s particularly bad news for the upcoming expert network-related trials. Jiau is going to spend 10 long years in jail.
Of course, the evidence against her was pretty incriminating, as were the testimonies against her, especially that from her colleague at Nvidia and Noah Freeman.
Both of them hated working with her, but testified that her tips were spot-on.
Jiau created a “club,” and got paid in lobsters and presents (payments which she called “sugar”) for her “perfect tips.” The interesting lady also had code words for her sources, “cooks,” and her tips, “recipes.”
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